FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE SHOW HOW YOU ARRIVED AT ANSWER. THANK YOU urity A has an expected return of 12.4 percent with a standard deviation of 15 percent,

PLEASE SHOW HOW YOU ARRIVED AT ANSWER. THANK YOU

image text in transcribed

urity A has an expected return of 12.4 percent with a standard deviation of 15 percent, and a correlation with the market of 0.85. The standard deviation of rm is 12 percent. What is the beta coefficients of A? If the risk-free rate is 6 percent, what is the value of rm? [Hint: Beta-Cov(Ri,Rm)/Var(Rm)]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Finance

Managerial Finance

Authors: John Fred Weston, Eugene F. Brigham, John Boyle, Robin John Limmack

1st Edition

0039101975, 978-0039101978

More Books

Students also viewed these Finance questions

Question

★★★★★
Presentation Can a gain or loss from a translation of foreign currencies due to a major devaluation in currency be treated as an extraordinary item?

Answered: 1 week ago

Question

★★★★★
For many years Gerber has manufactured baby food in small, single-sized containers. In conducting an environmental scan, (a) identify three trends or factors that might significantly affect this...

Answered: 1 week ago

Question

★★★★★
Let X be a continuous random variable with density f , and Y be another variable related to X by Y = X3. Show that the density function of Y is fY (y) = f ( 3 y ) 3 3 y2 .

Answered: 1 week ago

Question

★★★★★
Sam Sharpe executed and delivered to Don Dole the following instrument: Knoxville, Tennessee May 29, 2011 Thirty days after date I promise to pay Don Dole or order, Five Thousand Dollars. The holder...

Answered: 1 week ago

Question

★★★★★
lectronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2024 are as follows: The expected long-term rate of return on plan assets was 8%. There were no AOCI...

Answered: 1 week ago

Question

★★★★★
What would your suggestion be if a company always has under applied overhead

Answered: 1 week ago

Question

★★★★★
Two PFC Channel2 are welded together to form the composite section as shown in Figure (a). The channel properties are given in Figure (b) where x and y indicate centroidal axes. a) Figure (a) y....

Answered: 1 week ago

Question

★★★★★
step a = 7 minutes , Step B = 3 minutes, Step C 10 minutes, Step D = 6 minutes, Step E = 5 minutes If you could add one more resource to one of the steps (assuming each step is currently being done...

Answered: 1 week ago

Question

★★★★★
Given the following PMF: Px(k) = LA LT 18 12 0 for k = 1 for k = 2 for k = 3 for k = 4 otherwise (a) Find and plot the CDF. (b) Find Var(X) (c) Let Y = 2/X. Find E[Y]

Answered: 1 week ago

Question

★★★★★
On January 1 , Year 1 , Marino Moving Company paid $ 4 8 , 0 0 0 cash to purchase a truck. The truck was expected to have a four year useful life and an $ 8 , 0 0 0 salvage value. If Marino uses the...

Answered: 1 week ago

Question

★★★★★
FE/EIT - Static analysis of a wheel (spool) pulled by a rope (See spool dynamics in Hw 15.5). The figure to the right shows a rigid body B consisting of an axle and wheel. One end of a thin...

Answered: 1 week ago

Question

★★★★★
=+What is your personal mission statement?

Answered: 1 week ago

Question

★★★★★
=+4. What skills are needed to create a sustainable personal brand? What areas do you feel most confident in? What areas do you feel you need to work on?

Answered: 1 week ago

Question

★★★★★
=+1. Define personal brand. What are three components to take into consideration when exploring what a personal brand is?

Answered: 1 week ago

Previous Question Next Question